A corner of Bai Chay tourism site in Quang Ninh (Photo: VNA)

Hanoi (VNA) – Joining production chains has become a vital choice for cooperatives in the northern province Quang Ninh in order to survive, when most of them have limited capital and operate on small scale.

Nguyen Van Nghi, chairman of the province’s Alliance of Cooperatives, said the provincial authorities have helped local cooperatives establish linkages among them, then expand ties to the region and across the country.

At the same time, the province also encouraged local cooperatives to transform into new models in line with the 2012 law on cooperatives in order to become eligible for new preferential treatment under the law.

According to Nguyen Manh Cuong, Vice Chairman of the Vietnam Alliance of Cooperatives, Quang Ninh has issued many incentives for cooperatives while keeping close management of the sector, which provided a good environment for the collective economy to grow.

The development of cooperatives in Quang Ninh has also received a boost with the programme One Commune One Product (OCOP), under which the province called for investment in agriculture and rural areas. The OCOP has been a success in Quang Ninh.

Vice Chairman of the provincial People’s Committee Dang Huy Hau noted that a number of cooperatives have sprung up in areas with developed goods production. Those cooperatives have successfully linked with trading businesses to promote their products.

One example of such cooperatives is the Phu Hai industrial production and service cooperative in Mao Khe ward, Dong Trieu town. The cooperative, which makes incense for export, has all its materials – wood and coal powder – supplied by local processing units. It also contracted with trading businesses and partners for the sale and promotion of products.

With the efforts made by the province’s Alliance of Cooperatives to promote the participation of cooperatives in value chains in combination with the building of new style rural areas and the OCOP programme, at present 119 enterprises, cooperatives and production households have joined the OCOP scheme. Among them, 33 firms, 35 cooperatives and 51 cooperative groups have been successful in building 25 brand names for local products.

The Quang Ninh Alliance of Cooperatives is working with businesses and research institutes to expand the models of hi-tech agricultural productions and linkages among research institutes, production units and businesses.

According to Vice Chairman of the Vietnam Alliance of Cooperatives Nguyen Manh Cuong, Quang Ninh’s Alliance of Cooperatives should timely advise the provincial People’s Committee in matters related to developing the cooperative economic sector.

The alliance should also coordinate closely with management agencies, sectors and mass organisations to get the entire political system involved in the work.

Sharing Cuong’s view, Vice Chairman of the provincial People’s Committee Dang Huy Hau required local authorities and agencies to continue paying attention to developing cooperatives, considering them real enterprises.

Local authorities should realise the importance of cooperatives in socio-economic development, and keep a close watch of their operation in order to timely remove arising problems related to policies and mechanisms, Hau said.

On the part of cooperatives, he recommended that they should improve the knowledge and capacity of their managerial staff, and continue to build linkages with other cooperatives and enterprises, thus raising their business efficiency.-VNA